Sales of 833.7 Billion KRW, Up 11.7% Year-on-Year
Continued Improvement in Overseas Business Profits Including US Subsidiary
Pulmuone announced on the 15th that it achieved record-high sales and operating profit for both individual and cumulative bases in the third quarter of this year.
Pulmuone's consolidated sales for the third quarter of this year reached 833.7 billion KRW, an increase of 11.7% compared to the same period last year, and operating profit recorded 33.3 billion KRW, up 52%. Cumulative sales and operating profit for the third quarter were 2.396 trillion KRW and 65.8 billion KRW, respectively.
In the domestic business, the food service distribution sector led sales and operating profit growth through new business orders and continuous expansion of group catering, as well as growth in concession and rest area channels. The overseas business achieved sales growth and operating profit improvement through continuous growth of key products such as tofu and Asian food in the U.S. subsidiary, an increase in loyal customers by channel, and rising sales of tofu and noodle products in the China subsidiary.
The food service distribution business achieved third-quarter sales of 240.5 billion KRW, a 30.4% increase compared to the same period last year, based on a stable portfolio. Continuous new orders for outsourced catering, a high renewal rate, and structural improvements in low-profit channels drove growth and profit, and the trend of simultaneous growth in sales and operating profit is expected to continue.
The U.S. subsidiary, which accounts for the largest portion of the overseas business, saw third-quarter sales grow by 33.3% year-on-year through additional customer acquisition in membership channels such as Costco, double-digit growth in retail channels, solid continuous growth of Asian food, and logistics cost reduction due to the start of local production. The subsidiary has significantly reduced its deficit and is on the verge of turning profitable.
The China subsidiary's third-quarter sales increased by 9.2% year-on-year due to strong performance of refrigerated pasta and tofu products. The Japan subsidiary experienced a slight decrease in overall sales due to adjustments in low-profit products, but performance improvement is expected in the fourth quarter through expansion of the tofu bar product lineup and channel expansion.
Pulmuone plans to strengthen the continuous growth of its domestic food manufacturing and distribution business based on the growth of online channels and improved profitability of business-to-business (B2B) channels. For the food service distribution business, it will focus on expanding sales and profits in the fourth quarter through new openings of medium to large-sized business sites and stable operation of existing sites. The overseas business plans to continue high growth of key products by subsidiary through continuous new product launches including K-Food and strengthening sales channels, achieving profit improvement through sustained external growth.
A Pulmuone official stated, "The food service distribution business and overseas business led sales growth in the third quarter," adding, "We will maintain growth in the fourth quarter and improve profitability by expanding the K-Food product lineup in overseas markets."
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